New York-based Time Warner Cable (TWC) has announced that it has entered into a definitive agreement to acquire rival cableco Insight Communications for USD3 billion in cash. Insight – which is currently owned by the Carlyle Group, Crestview Partners and MidOcean Partners – serves approximately 537,000 high speed broadband subscribers, 679,000 video customers and 297,000 voice telephony users in Indiana, Kentucky and Ohio. In recent years Insight has invested in significant improvements to its infrastructure, including the deployment of DOCSIS 3.0 technology. TWC believes that, after incurring one-time costs and capital expenditures, the deal will allow it to witness annual cost efficiencies of around USD100 million; the company expects to realise the bulk of the savings within two years of the transaction closing.
Glenn Britt, chairman and CEO of Time Warner Cable, commented: ‘We believe in our business and its long-term prospects and have long thought that Insight’s well-run, technologically advanced systems would fit well with our Midwest operations. With the deal announced today, we are able to acquire those systems at an attractive price that is consistent with both our disciplined approach to M&A and our capital allocation strategy. We look forward to serving these customers, welcoming Insight employees to the Time Warner Cable team and building on Insight’s successes’.